Financial Audit of Central Government and NHS Bodies in Wales 2007 _part3 ppt

21 Financial Audit of Central Government and NHS Bodies in Wales 2007 3.11 In December 2006, the Assembly Government implemented two new financial systems - 'E-purchases' a purchase orde

Trang 1

21 Financial Audit of Central Government and NHS Bodies in Wales 2007

3.11 In December 2006, the Assembly

Government implemented two new financial systems - 'E-purchases' (a purchase ordering system) and 'E grants' (a system for tracking grants payable) - designed to improve the quality and timeliness of resource-based financial information available to

sub-accounting officers in controlling their budgets

3.12 Accurate and timely financial information should be made available and utilised throughout the year, and not just to support the production of year-end accounts The systems recently implemented are intended to support the Assembly Government's intention

to improve the financial information available

on a routine basis to support its business activities and decision-making Further progress still needs to be made, however, to ensure that the systems in place will deliver the full range of benefits available from resource accounting My staff will continue to work with and advise the Assembly

Government in taking forward developments

in this area

The Whole of Government Accounts project requires sound financial systems that provide prompt and accurate financial information

3.13 The aim of HM Treasury's Whole of Government Accounts project is to produce a set of commercial style consolidated accounts for the whole of the public sector across the United Kingdom It will make available for the first time comprehensive audited public sector information, based upon generally accepted accounting principles This will support enhanced policy formulation and resource allocation, and should contribute significantly

to fiscal management The 2007 Budget Report announced that the 2008/2009 set of Whole of Government Accounts will be the first to be published

Better use of resource accounting will help to

enhance financial and risk management

Resource accounting is the application of accruals based

methods for reporting on the expenditure of central

government bodies and a framework for analysing that

expenditure against business objectives, relating this to

outputs wherever possible It means, for example, that it is

when a transaction occurs that determines when it is

brought to account rather than the period in which the

related cash is received or paid Financial statements

prepared on an accruals basis therefore provide a more

accurate record of resources expended.

More regular use of accruals based accounting information

by public sector organisations will bring several benefits:

Bodies will have access to regular accruals based management accounts These will inform

managements' decision making process, providing

a clearer picture of an organisations actual performance.

Regular reviews of accruals based management information will assist risk management by providing better early warning signs of possible over or under spends.

Closedown procedures in an organisation producing regular accruals based information will

be more efficient, assisting bodies to meet Treasury's faster closing initiative, and the Whole of Government Accounts time-table.

The faster closing initiative ensures that audited information is made available earlier, providing the users of public sector accounts with more up to date and relevant information.

This is trial version www.adultpdf.com

Trang 2

3.14 As part of the Whole of Government Accounts

process, the Assembly Government is

responsible for preparing sub-consolidations

of financial information in Wales provided by

central government bodies (including the

Assembly Government itself), NHS trusts and

local authorities The sub-consolidations are

submitted by the Assembly Government to

HM Treasury and audited by the Wales Audit

Office There will also in future be a separate

Whole of Government of Wales Account,

prepared under the Government of Wales Act

2006, although a date for its first publication is

yet to be determined

3.15 The requirement each year for audited bodies

to complete Whole of Government Accounts

information within a strict timetable is also

reinforcing the benefits of faster closing of

accounts

3.16 My audit work on the 2005/2006 Whole of

Government Accounts submissions by audited

bodies was undertaken on a 'dry-run' basis

While the dry-run process generally went

successfully, my audit highlighted a failure by

some bodies to accurately disclose their

transactions and balances with other public

sector bodies This information is essential as

it has to be eliminated from the consolidated

Whole of Government Accounts to prevent

double counting of transactions and balances

3.17 The accurate identification and agreement of

transactions and balances between public

bodies is probably the most significant risk

associated with the Whole of Government

Accounts process Having arrangements in

place to do this should, in any case, be part of

sound financial management Organisations

will need to establish better systems to

identify relevant transactions and balances

throughout the financial year, and become

more proactive in securing agreements with

other public sector bodies on amounts so that

accurate information can reported

3.18 My staff will continue to work closely with officials of the Assembly Government in improving the guidance available to auditors and audited bodies in this area I also welcome the contribution that the Wales Audit Office is making to a Whole of Government Accounts working group of the Public Audit Forum This forum brings together auditors from across the UK of all bodies involved in auditing Whole of Government Accounts including other National Audit Agencies, the Audit Commission, and representatives from the private sector firms

NHS bodies are currently meeting risk management standards but face new challenges in relation to new healthcare standards and governance review

3.19 Effective risk management should represent

an integral part of corporate governance arrangements within public sector bodies in Wales It is needed in order to ensure that organisations can successfully manage the internal and external risks that they face as

an organisation All audited bodies have continued to make good progress in developing their risk management systems

3.20 NHS bodies have an additional requirement

to complete a self-assessment each year against the Welsh Risk Management (WRM) standards Governance is a specific standard against which bodies are assessed, and this examines the use and review of risk registers; how well risk management is embedded within the organisation; and sub-committees setup to oversee Corporate Governance NHS bodies are expected to achieve a target

of 75 per cent against this standard, and all

Trang 3

36 bodies successfully met this requirement

in 2005/2006 I am also satisfied that overall NHS bodies are making good use of risk registers in their business operations

3.21 NHS bodies currently face further significant

challenges in respect of their corporate governance systems These include the implementation of new health care standards, and a detailed review of their current

governance frameworks

3.22 The new framework of health care standards

outlined in Figure 9will come into force in 2006/2007, as part of the ‘Making the Connections’ agenda

3.23 NHS bodies in Wales will need to review their

systems in all areas to ensure that they have the necessary procedures in place to meet the requirements of and report on these standards

3.24 The Director of NHS Wales has also commissioned a review of corporate governance within the NHS in Wales to determine whether the NHS is evolving in such a way as to meet the challenges ahead The review is being undertaken by the

National Leadership and Innovation Agency for Healthcare (NLIAH) with support from the Wales Audit Office Figure 10sets out the Terms of Reference for the review

3.25 I encourage all NHS bodies to take an active part in the review, and to consider in detail any recommendations that may arise I will also want to consider the results of the review

on its conclusion

New Risk Management Standards

The Patient Experience

Services should be user friendly, patient centred,

and reflect the diverse needs and preferences of

the community

From April 2007 healthcare organisations in Wales will be required to undertake self-assessments against these new standards, which will then

be validated by the Healthcare Inspectorate Wales Whilst 2007 will be a development year for this work, in future years these standards will be used to inform and be reported in the Statement of Internal Control and the Annual Reports The intention is that the current WRM standards will be incorporated into the new Healthcare Standards.

Clinical Outcomes

Services should be delivered as promptly as

possible

Healthcare Governance

Systems should be in place to support both

managerial and clinical leadership

Public Health

Healthcare organisations should collaborate with

relevant organisations and local communities to

ensure effective design and delivery of

programmes

Figure 9: NHS bodies will be assessed against new risk management standards in 2006/2007

Trang 4

The establishment of the Welsh

Consolidated Fund and National

Assembly for Wales Commission

present opportunities for locally

accountable Welsh spending as

well as associated risks which

the Auditor General will help the

Welsh Assembly Government to

manage

3.26 The Government of Wales Act 2006 received

Royal Assent on 25 July 2006 and came into

effect following the May 2007 Assembly

elections The Act abolished the former

Assembly corporate body and reconstituted

the National Assembly as an unincorporated

association; as such it no longer has any

government functions These functions now

rest with the Assembly Government, an entity

that is legally separate from the National

Assembly

Welsh Consolidated Fund

3.27 The Act established a Welsh Consolidated

Fund (the Fund) from which the Assembly

Government and other bodies draw down

funds The Parliamentary grant provided by

the Secretary of Sate for Wales is paid into

the Fund

3.28 Payments out of the Fund are intended to meet the costs of the Assembly Government’s programmes, and need to be authorised either via an Annual or Supplementary Budget Motion of the Assembly Each budget motion specifies the amount of resources that may

be used; the amounts of accruing resources that may be retained; and the amounts of cash that may be issued from the Fund

3.29 The Auditor General is required to give an approval to draw down all sums payable from the Fund and must be satisfied that each payment is in accordance with the relevant budget resolution

National Assembly Commission 3.30 The National Assembly Commission (the Commission) is a new corporate body established under the 2006 Act This body is now responsible for providing the National Assembly with property, staff and services

3.31 The former Assembly recognised that there were significant risks to be managed in creating the new Commission out of the former Assembly Parliamentary Services department In particular, as a separate corporate body the Commission needed to establish its own corporate governance and financial management arrangements

Figure 10: The NLIAH review will assist NHS bodies to further develop their corporate governance systems by

Providing a baseline assessment for the Director, NHS Wales as Accounting Officer, on the standards of corporate governance embedded and operating at Board level in the NHS in Wales;

Advising the Director, NHS Wales on how the existing governance framework can be improved, and on options for future reform of the governance and accountability structure;

Helping NHS Boards to discharge their responsibilities effectively by working with them to develop and roll out a tailored governance development programme designed to enhance Board level skills and strengthen the corporate governance framework within their organisations; and

Contributing to the development of a more effective and joined-up framework for board members across the public sector in Wales, contributing to taking forward the recommendations of the Beecham Report 'Beyond Boundaries'.

Trang 5

3.32 In May 2006 a Shadow Commission was

established as an advisory committee to the former Assembly Its brief was to review and recommend governance and financial arrangements for the new Commission

3.33 At the first meeting of the Commission

following the elections, specific governance and financial management proposals were formally presented and approved However, risk management arrangements are yet to be fully developed and the new Commission will need to embed these into its day to day operations as soon as possible

3.34 I look forward to working with the newly

formed Assembly and its corporate bodies, and to continuing the productive relationship I have always had with Assembly Government management

Trang 6

This Report covers the results of the examination of

all of the 2005/2006 accounts prepared by the

National Assembly and the other public bodies that I

audit A complete listing is given below:

Accounts prepared by the National Assembly

Assembly Core Resource account

Assembly Consolidated Resource account

Health Commission Wales (Specialist

Services)

Welsh non-Domestic Rating

Summarised Account of local health boards

in Wales

Summarised Account of NHS trusts in Wales

Assembly Members' Pension Scheme

Account

AGSPBs

Arts Council of Wales

Care Council for Wales

Countryside Council for Wales

Health Professions Wales (abolished from 1

April 2006)

Higher Education Funding Council for Wales

Local Government Boundary Commission for

Wales

National Council for Education and Training

for Wales (abolished from 1 April 2006)

National Library of Wales National Library of Wales - Staff Superannuation Scheme Account National Museums and Galleries of Wales Qualifications, Curriculum and Assessment

Authority for Wales (abolished from 1 April

2006)

Sports Council for Wales Sports Council for Wales Trust Account Wales Centre for Health

Wales Tourist Board (abolished from 1 April

2006)

Welsh Development Agency (abolished from 1

April 2006)

Welsh Language Board

NHS trusts

Bro Morgannwg Cardiff & Vale Carmarthenshire Ceredigion & Mid Wales Conwy & Denbighshire Gwent Healthcare North East Wales North Glamorgan North West Wales

Appendix 1 - Accounts covered by this report

Trang 7

Pembrokeshire & Derwen Pontypridd & Rhondda Swansea

Velindre Welsh Ambulance Services

Local health boards

Anglesey Blaenau Gwent Bridgend Caerphilly Cardiff Carmarthenshire Ceredigion Conwy Denbighshire Flintshire Gwynedd Merthyr Tydfil Monmouthshire Neath Port Talbot Newport

Pembrokeshire Powys

Rhondda Cynon Taf Swansea

Torfaen

Vale of Glamorgan Wrexham

Other bodies

Children's Commissioner for Wales Estyn

Forestry Commission Wales General Teaching Council for Wales Public Services Ombudsman for Wales

Welsh accounts audited by the Comptroller and Auditor General and laid before the National Assembly

The Comptroller and Auditor General was responsible for the audit of the following Welsh accounts for 2005/2006:

Sports Council and Arts Council Lottery Distribution Accounts

The Sports Council for Wales and the Arts Council

of Wales are Lottery distributors Each prepares a separate annual statement of account for the discharge of their Lottery functions These activities are not devolved responsibilities and are instead performed under delegated authority from the Department of Culture, Media and Sport

The European Agriculture Guidance and Guarantee Fund

This European fund pays subsidies to Welsh farmers, which are routed through the National Assembly and the Countryside Council for Wales This is not a devolved function, and an annual account is prepared by each body in the form prescribed by the European Commission

Trang 8

Appendix 2 - List of Value for Money reports published in 2005/2006

List of Value for Money reports published in 2005/2006:

management of sickness absence in further education institutions in Wales;

progress in implementing the Committee's recommendation on the procurement of primary care medicines;

the collapse of Antur Dwyryd Llyn;

contract for the provision of the out-of-hours GP service in Cardiff;

protecting NHS Trust staff from violence and aggression;

adult mental health services in Wales: a baseline review of service provision;

funding for the National Botanic Garden of Wales;

NHS energy management in Wales;

administration of Grants for Education Support and Training and the Better Schools Fund; and the Merlin contract - enabling the National Assembly to change its business processes through ICT

Financial Audit of Central Government and NHS Bodies in Wales 2007

www.adultpdf.com

Định dạng
Số trang	8
Dung lượng	201,84 KB